How to invest in real estate

[William Hull]

Although property owners have had many down years regarding equity, the market is recovering in a great deal of the country. The redemption homeowners are experiencing is a rise in home values. Real estate's unpredictable nature causes investors to inquire about whether investment properties are a good fit. Investors also wonder what percentage in their portfolio should be devoted to real estate. Real estate investment trusts invest in properties and have a similar trading capability, like stocks. Real Estate Investment trusts offer liquidity and diverseness to investor portfolios. Rental income has the ability to create a positive cash flow. Being a landlord can be an around the clock ordeal. Maintaining a rental property yourself is hard work. The negative aspect of buying rental real estate properties is the necessary upfront liquidity. These expenses involve down payments, taxes, monthly carrying costs, emergency repairs or unexpected expenses including curve ball assessments. Vacating tenants can affect a sale and cause the process to lag. If the market turns, waiting for a change will cause money to be held up potentially for years. It is important to consider the positive and negative attributes of real estate investing. Over time, real estate can be is a solid investment.

Key Takeaways:

One benefit to investing in real estate is that is can give you a steady flow of income.

One disadvantage of real estate is that it is time consuming and sometimes difficult to be a landlord.

Another disadvantage to investing in real estate is that it requires an up-front cash investment.

"Here’s some good news for folks still waiting for the value of their homes to come back. In many parts of the country, the residential real estate recovery is continuing"

Read more: http://www.bankrate.com/financing/investing/jean-chatzky-how-to-invest-in-real-estate/